Includes index.

Components and connections in financial statements. Starting with cash flows ; The three financial statements ; Profit isn't everything ; Sales revenue and accounts receivable ; Cost of goods sold expense and inventory ; Inventory and accounts payable ; Operating expenses and accounts payable ; Operating expenses and prepaid expenses ; A unique expense : depreciation ; Accruing the liability for unpaid expenses ; Income tax expense and its liability ; Net income and retained earnings : earnings per share (EPS) ; Cash flow from operating (profit-making) activities ; Cash flows from investing and financing activities ; Footnotes to financial statements -- Financial statement analysis. Impact of growth and decline on cash flow ; Financial statement ratios ; Profit analysis for business managers -- Reliability of financial reports. Accounting and financial reporting standards ; Accounting methods and massaging the numbers ; Audits of financial reports in the post-Enron era ; Parting comments.

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